Quality service within the context of Mozambique’s developmental objectives and public service reform

Abstract

Investment Promotion Agencies act as economic development conduits which seek not only just to undertake promotion, but also to improve the wider environment for investors by liaising and initiating change. As a result, worldwide governments have set up Investment Promotion Agencies (IPAs) to advance investment goals and by extension economic development in the context of a dynamic and competitive environment. Yet, little empirical research is done, especially in the developing world with a view to enhance the working practices of IPAs. This study investigated the effectiveness and quality of services provided by Mozambique’s Centre for the Promotion of Investment (CPI) from the perspective of both local and foreign investors. A quantitative approach by way of an online questionnaire was employed in the study. The data generated was analysed with the assistance of a registered statistician. The study found that most of the participants (local and foreign investors in Mozambique) do not make use of the services which the CPI is mandated to offer such as company registration; registration with the Fiscal Department and the publishing of company constitution in the government gazette, to name but a few. Furthermore, investors who have accessed the above services indicated a lack of service quality by the CPI. In the wider environment, the study found areas of concern such as an inadequate accounting system and a lack of proper coordination among the stakeholders involved in the process of setting up a business in Mozambique.